NRB recognises mobile payment portals
KATHMANDU, DEC 17:
Mobile payment portals can now gain momentum as the central bank has officially recognised it as part of the branchless banking model.
Nepal Rastra Bank (NRB) issued a circular today allowing branchless banking agents of banks to make payments through mobile phone technology. Earlier, the central bank had only banks to consider Point-of-Sale (PoS) machine transactions under the branchless banking system.
Earlier in June, NRB had spelt out the services that financial institutions could allow their customers to undertake through business agents, mobile, internet and e-card banking along with defining their area of operation, but it had missed allowing mobile payments as part of branchless banking.
The circular has said that banks can provide mobile phone services to make deposits and payments for their customers through the banks’ appointed agents. However, banks need to incorporate the system that will make real time changes in the customers’ accounts accordingly immediately after the transactions.
“As NRB has officially recognised mobile phone payments as part of branchless banking, mobile payment portals will be popular among financial institutions,” said executive chairman of Finaccess Sanjay B Shah. Finaccess operates Hello Paisa, a mobile financial service platform that allows access to mobile wallet through mobile banking.
The multi-bank mobile banking portal, Hello Paisa, has also launched a facility that allows mobile holders to transact through mobile phones even without a bank account.
“This directive has given service providers like us a clear path and we are hopeful more banks will be involved in mobile banking payments that increases their outreach at minimum cost,” he added.
Branchless banking and mobile money have become prudent choices for financial institutions worldwide to expand their service base instead of competing to open more brick-and-mortar branches in the already crowded town hubs. Amidst this situation, branchless banking and mobile banking have become important instruments to reach a wider mass at a relatively lower cost rather than setting up branches in villages that do not have a sizable population.
“Since mobile penetration in Nepal is more than 55 per cent of the total population, mobile banking is a suitable method to increase financial access,” said Shah.
“NRB is promoting mobile banking so that financial access in remote areas where bank branches are not viable will also be included in the financial service net,” said spokesperson for the central bank Bhaskar Mani Gyanwali. The central bank allows financial institutions of all categories to provide banking services using mobile devices through SMS or use of mobile banking platforms. However, they can operate the service in rural areas only.
Everest Bank, Siddhartha Bank and Mega Bank use smart cards and agents to provide financial services to the rural clientèle. Likewise, Kumari Bank’s Mobile Cash and Laxmi Bank’s Mobile Money use the mobile network as a platform to allow banking transactions.
Source: THT
